It’s important to us to explain the complex topic of the occupational benefit scheme as comprehensibly as possible. However, sometimes we cannot get around using technical terms. In our glossary we explain these technical terms briefly and in a reader-friendly manner.




An insurance specialist employs the term "tariff" to mean the different types of insurance. However, the term is commonly used to mean the tables of (life) premiums based on age at entry and duration of contract or the age at term established for each insurance policy and then presented together as a list of tariffs.

Tax deduction

Life insurance premiums in the context of pillar 3b (non-linked insurance) may be deducted from income together with other insurance premiums (e.g. health plan) up to a given limit (flat-rate deduction). Premiums of a linked occupational pension plan may be entirely deducted from income provided that the maximum deduction limits are not exceeded.

Technical rate of interest

Actuarial calculations produce this rate which has to be fixed in such a way that it is always higher than the real return on capital. See also under technical interest.

Termination benefits (BV)

Retirement savings from an occupational pension plan that an insured person is credited with or granted upon cessation of employment.

Triple-pillar system

This is the name given to the Swiss old-age, survivors' and invalidity insurance system. It became part of the Federal Constitution (Art. 111) in 1972 and is based on three pillars. The first is represented by the AHV/AVS and IV/AI - a general insurance provided by the Confederation which guarantees a minimum income. The second pillar is formed by the BVG/LPP occupational pension plans. This cover, along with that of the first pillar, should allow an insured person to maintain his customary standard of living. The third pillar is formed by voluntary personal pension plans. This supplements the first and second pillars in accordance with personal needs. The third pillar is subdivided into unrestricted (3b) and restricted (3a) pension plans.